The Hindu Business Line : Banking, auto stocks rally; metal tumbles

Taking cues from the global markets and low crude prices, the domestic markets opened higher for the second successive day and gained the strength as the day progressed.

All BSE sectoral indices were in the green except the metals sector. The stocks in the BSE Sensex and Nifty basket (except three stocks) closed in the green. Sensex surged 233 points to close at 11,893.8. Banking sector gained for the second successive day along with auto and software.

The overall breadth of the market was in favour of advances. The advance-decline ratio was in the region of 2:1.

Buzzing stocks

Infosys gained 2.2 per cent after the company announced that it has entered into an alliance with Schlumberger to provide software services to oil and gas companies. All sugar stocks buzzed on Wednesday's trading. Sugar stocks, which were on the sidelines for quite some time, rose on the back of news that the Government is considering to reduce the customs duty on imported ethanol in a bid to make raw material cheaper for domestic users across all sectors. Bajaj Hindusthan, Balrampur Chini, Dwarikesh Sugar, Sakthi Sugar and Mawana Sugar all ended in green.

Other prominent gainers on the BSE were NTPC, Maruti Udyog, HDFC Bank, ICICI Bank State Bank of India and Bajaj Auto.

Sector Focus

Banking stocks were active again on Wednesday. Federal Bank closed with a maximum gain of 10 per cent. Oriental Bank of Commerce, Punjab National Bank, Corporation Bank, Dena Bank and Canara Bank made gains in the band of 3- 6 per cent. However, a few that bucked the trend and closed in the red were Karur Vysya Bank and Kotak Mahindra Bank.

Auto sector too joined the bandwagon of gainers. Eicher gained 4.9 per cent to close at Rs 73.85. Escorts, Tata Motors, Hindustan Motors and Ashok Leyland were all gained between 2 and 4 per cent.

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Patni Computers led the pack of gainers in the software space. It added Rs 16.40 to end the day at Rs 407.40. i-flex Solutions, Wipro, TCS, Satyam Computer and Financial Technologies were the other gainers.

The BSE Metals Index failed to shine on a day when most others added value and aided the markets to close firm. Hindustan Zinc shed 2.2 per cent to end the day at Rs 598.4 and the other losers were JSW Steel and Hindalco Industries.

Jindal Steel and Power added Rs 53.50 to Rs 1,601.50. Others to close in the green were Nalco, SAIL and Sterlite Industries.

Stock-specific action

Classic Diamonds India announced that the company recently entered into an agreement with Diamond Direct LLC to establish retail operations in the US and Canada. The stock gained Rs 1.20 to close at Rs 475.30.

Jagran Prakashan surged 7.8 per cent to Rs 475.30. The company announced that an in-principle agreement under which the company will publish the facsimile edition of the Independent (International edition) from New Delhi.

Bajaj Electricals rallied 3.3 per cent to Rs 455 after the company's unit secured an order worth of Rs 70 crore.

Gainers and Losers

The fall in the crude price spurred airline sector stocks of Air Deccan and Jet Airways. Other gainers were ITI, IDBI, Bharti Airtel and Vimta Labs.

Bears controlled Indiabulls asd it shed value. Hindalco, HCL Technologies and GAIL were among the losers on the Nifty.